Small-Car Sales in Europe Likely to Peak This Year

Sales of subcompact cars in Europe is likely to grow 2% to a five-year high of 3.2 million units this year before beginning a long-term fade, according to IHS Automotive.

IHS says a shift in buyer preference to compact crossovers and mini-SUVs will shrink Europe’s small-car market to 2.7 million units by 2022. The same general move from cars to crossovers has been at work in the U.S. for the past year.

Europe’s demand for SUVs has surged from about 168,000 units in 2011 to more than 1 million in 2015. Analysts agree sales of such vehicles are likely to double within the next six years.

Automotive News Europe notes the trend is being pushed by a wave of new SUV/crossovers, coupled with a lack of fresh entrants in the small-car segment. But small cars aren’t dead. ANE says manufacturers are giving their small vehicles more style, adding upscale features and in some cases expanding the size of the vehicles themselves.